TD Bank savings accounts have competitive rates for some customers, but the best choice depends on your balance and how you bank

TD Bank offers several savings account options, each with different interest rates and minimum balance requirements. The TD Savings Account (their basic option) currently pays a low rate with no monthly fee if you maintain a minimum balance—usually $100 to $300 depending on your state. The TD Money Market Savings Account pays a higher rate but requires a larger opening deposit and minimum balance, typically $2,500 or more. Whether either is "good" for you depends on whether you already bank with TD, how much you plan to keep in savings, and how that rate compares to what online banks offer.

The real advantage of TD savings accounts is convenience if you use TD for checking: you can move money between accounts instantly at an ATM or through their app, and you have access to physical branches in the Northeast and Mid-Atlantic. The real disadvantage is that their rates are usually lower than what you can get from online-only banks like Marcus, Ally, or Discover, which have no physical branches but pay significantly more interest on the same dollar amount.

Key Takeaways

  • TD's basic savings account charges no monthly fee if you keep a minimum balance, but the interest rate is typically 0.01% to 0.05%, which is much lower than online banks.
  • TD's Money Market account pays higher interest but requires a larger minimum balance ($2,500 or more) and may have withdrawal limits.
  • If you already have a TD checking account and rarely move money between banks, the convenience of one institution may outweigh the lower rate.
  • If you want to maximize interest earned, online banks consistently pay 4% to 5% on savings, compared to TD's rates under 1%.

How TD's interest rates compare to other banks

TD Bank's savings account rates change over time and vary slightly by state, but they typically fall between 0.01% and 0.05% annually on a basic savings account. On a $10,000 balance, that means you earn roughly $1 to $5 per year in interest. The Money Market account pays more—sometimes 0.10% to 0.25%—but still lags behind what online banks offer.

Online banks like Marcus, Ally, Discover, and American Express currently pay between 4% and 5% on savings accounts with no minimum balance and no monthly fees. On the same $10,000, you would earn $400 to $500 per year. The gap widens as your balance grows. TD's rates are competitive only if you value the branch network and integrated checking account more than the interest you would earn elsewhere.

Monthly fees and minimum balance requirements

TD's basic savings account has no monthly maintenance fee as long as you keep the minimum balance, which is usually $100 to $300. If your balance drops below that threshold, TD charges a monthly fee (typically $5 to $10, depending on your state and account type). This fee can wipe out months of interest on a small balance, so it matters whether you can comfortably stay above the minimum.

The Money Market account requires a higher opening deposit and minimum balance—often $2,500 to $10,000—and may charge a higher monthly fee if you fall below it. Some Money Market accounts also limit how many withdrawals you can make per month without penalty, though federal rules on this have loosened in recent years. Check your state's specific terms on TD's website or ask at a branch, because these details vary by location.

When a TD savings account makes sense

A TD savings account is practical if you already have a TD checking account and you move money between savings and checking regularly. You can transfer funds instantly at an ATM, through the mobile app, or at a branch without waiting for an ACH transfer to clear. This matters if you use savings as a buffer for unexpected expenses and need quick access to your money.

It also makes sense if you live or work near a TD branch and value the ability to deposit cash, ask questions in person, or handle problems face-to-face. Some people prioritize this convenience over a higher interest rate, especially if their savings balance is small (under $5,000) and the difference in annual interest is only a few dollars.

When to look elsewhere for savings

If your main goal is to earn as much interest as possible on money you are not touching for months or years, an online bank will serve you better. The difference between 0.05% at TD and 4.5% at an online bank on $50,000 is roughly $2,200 per year. Even if you have to wait one to three business days for an ACH transfer to clear when you need the money, the interest gain usually justifies it.

You should also compare if you are considering opening a new TD account just for savings. There is no reason to accept a lower rate for the sake of having everything in one place if you do not already bank with TD. Online banks offer the same convenience through mobile apps and often have better customer service for account questions.

How to move money between TD and an online savings account

If you decide to keep your checking at TD but move savings to an online bank, you can link the two accounts through ACH transfer. Log into your online bank's website or app, select "Link External Account," and enter your TD routing number and account number (both appear on your TD checks or in your online banking portal). The online bank will send two small test deposits to your TD account, which you then confirm in your TD account to verify ownership.

Once linked, you can transfer money from TD to the online bank, and vice versa. Transfers typically take one to three business days. You can set up automatic transfers (for example, moving $200 to savings every payday) so you do not have to remember to do it manually. This setup takes about 10 minutes and costs nothing.

Frequently Asked Questions

Does TD Bank offer any high-yield savings accounts?

No. TD's Money Market account is their highest-rate option, but it still pays well under 1% annually. Online banks offer true high-yield savings accounts paying 4% to 5%. If earning interest is your priority, you will need to move to an online bank or credit union.

What happens if my balance drops below the minimum?

TD charges a monthly fee, typically $5 to $10 depending on your state and account type. This fee repeats every month until your balance rises back above the minimum. On a small balance, the fee can exceed your annual interest earnings, so it is important to keep the minimum if you choose TD.

Can I have both a TD savings account and an online savings account?

Yes. Many people keep a small emergency fund at TD for quick access and a larger savings balance at an online bank for interest. You can link both accounts and move money between them as needed. There is no limit on how many savings accounts you can open.

Is my money safe in a TD savings account?

Yes. TD Bank is FDIC-insured, which means deposits up to $250,000 per account type are protected if the bank fails. A savings account at an online bank has the same FDIC protection. Your money is equally safe either way.

How often does TD change its savings interest rate?

TD adjusts rates based on Federal Reserve decisions and market conditions, sometimes monthly or quarterly. You will not earn more interest automatically if rates rise; you have to move your money to a higher-paying account or bank. This is another reason online banks are often better for savers—they tend to raise rates faster when the Fed increases rates.